Brower Piven Announces Extended Class Period in Actions Against New Century Financial Corporation After Disclosure of Government Inquiry

Brower Piven Announces Extended Class Period in Actions Against New Century Financial Corporation After Disclosure of Government Inquiry

Brower Piven, A Professional Corporation announces that class action lawsuits filed in the United States District Court for the Central District of California on behalf of purchasers of the common stock of New Century Financial Corporation (”New Century” or the “Company”) (NYSE: NEW) include claims for an extended period through March 2, 2007 such that the period for which claims have now been asserted extends from April 7, 2006 through March 2, 2007 (the “Class Period”).

Claims for this extended period were asserted when, after the close of the market on Friday, March 2, 2007, New Century disclosed for the first time that the U.S. Attorney’s Office for the Central District of California had notified the Company that it is conducting a criminal inquiry in connection with trading in New Century’s stock and that the U.S. Attorney’s Office is investigating accounting issues regarding New Century’s allowance for loan repurchase losses. On Monday, March 5, 2007, the next trading day, New Century’s stock price continued to fall, closing below $5.00 per share. Brower Piven, one of the firms that filed a class action lawsuit against the Company, has also been retained to pursue claims during the Class Period that extends though March 2, 2007.

The complaint filed by Brower Piven alleges that New Century and certain of its officers and directors violated the federal securities law. New Century is a real estate investment trust that through its subsidiaries operates mortgage finance companies.

The complaint filed by Brower Piven also alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results and concealed the following material adverse facts from the investing public: (a) the Company lacked requisite internal controls, and, as a result, the Company’s projections and reported results issued during the Class Period were based upon defective assumptions and/or manipulated facts; (b) the Company’s financial statements were materially misstated due to its failure to properly account for its allowance for loan repurchase losses; (c) the Company’s financial statements were materially misstated due to its failure to properly account for its residual interests in securitizations by failing to timely write down the impaired asset; (d) given the deterioration and the increased volatility in the sub-prime market, the Company would be forced to tighten its underwriting guidelines which would have a direct material negative impact on its loan productions going forward; and (e) given the increased volatility in the sub-prime market, the Company had no reasonable basis to make projections about its ability to maintain its current mortgage loan production levels for 2007. The complaint further alleges that as a result of these false statements, New Century stock traded at artificially inflated prices during the Class Period, reaching a high of $51.22 per share on April 28, 2006 and that Defendants took advantage of this inflation, selling 665,334 shares of their New Century stock for proceeds of over $26.6 million. On February 7, 2007, after the market closed, New Century announced that it will have to restate its consolidated financial results for the first three quarters of 2006 to correct errors the Company discovered in its application of generally accepted accounting principles regarding the Company’s allowance for loan repurchase losses. On this news, New Century’s stock fell $10.92 per share to close at $19.24 per share on February 8, 2007, a one-day decline of approximately 36%. Shares of the Company closed below $3.25 on March 9. 2007.

If you purchased stock (or bought call options or sold put options) in New Century Financial Corporation during the Class Period and suffered a net loss for transactions during the Class Period (including shares purchased during, but retained after, the Class Period), you may be a member of the proposed class, and you have until April 10, 2007 to ask the Court to become the lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. To learn more about this lawsuit and your ability to become a lead plaintiff, you may contact Brower Piven without obligation or cost to you, at The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by email at hoffman {at} browerpiven(.)com or by calling 410-332-0030. Charles Piven and David Brower have combined experience in securities and class action litigation of over 40 years. If you choose to retain counsel, you may retain Brower Piven, or you may retain other counsel of your choice.

CONTACT:
Brower Piven, A Professional Corporation
Baltimore, Maryland
Charles J. Piven
410/332-0030